“Of course franchising is only one of the specialist areas within our general business services,” said Cathryn Hayes, HSBC’s head of franchising, “but I believe it is one of the best ways of building the economy from the bottom. Most franchises have a presence locally as well as on a national level - they create local employment opportunities, help build communities and encourage a healthy work culture that can operate in each individual outlet and throughout the network.

“With one in five small businesses failing within their first year of operation, it’s obviously far from an easy option,” said Cathryn. “But many of the risks associated with a start-up are offset if you buy into an established franchise with a proven business formula to follow.

“We have been involved in franchising for over 20 years and are confident that it will continue to become stronger and more popular, bringing benefits that will extend throughout the whole economy.”

HSBC can help, providing financial advice and helping arrange funding for first time franchisees, as well as offering on-going specialist support to franchised businesses.

THINKING OF SETTING UP A FRANCHISE BUT DON’T KNOW WHERE TO START?

FOLLOW HSBC’S TOP 10 INVALUABLE TIPS…

1. Find out what franchises are available – there are franchise exhibitions, websites, directories, magazines, all devoted to franchising.

2. Take as much advice as possible – from the British Franchise Association, banks, lawyers, accountants, Business Links etc.

3. Examine your strengths and weaknesses – what skills do you have? Does the franchisor provide training and back–up to help you overcome any weaknesses?

4. Check the franchise is right for you – is the business one you can see yourself running?

5. Talk to existing franchisees – what problems did they have, how successful are they?

6. Investigate the franchisor – it is important that the franchisor has the financial resources to support a franchise network.

7. Examine the market place – is there a market for your chosen franchise's goods/services? Is the franchise operating in a market subject to fashion?

8. Take care with new franchises – has the franchise been piloted, how long has the franchisor been in business?

9. Check the legal agreement – has the franchise agreement been vetted by a franchise specialist solicitor?

10. Take your time – however enthusiastic you are, don't be rushed, and do your homework.